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Sundial, Inc., produces two models of sunglasses: AU and NZ. The sunglasses have the following...

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Accounting

Sundial, Inc., produces two models of sunglasses: AU and NZ. The sunglasses have the following characteristics:

AU NZ
Selling price per unit $ 480 $ 480
Variable cost per unit $ 180 $ 240
Expected units sold per year 75,000 25,000

The total fixed costs per year for the company are $27,360,000.

Required:

a. What is the anticipated level of profits for the expected sales volumes?

Anticipated Profit _____________________

b. Assuming that the product mix is the same at the break-even point, compute the break-even point.

Break Even point __________ Units

c. If the product sales mix were to change to four pairs of AU sunglasses for each pair of NZ sunglasses, what would be the new break-even volume for Sundial, Inc.?

Break Even Point _________ Units

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